28th Apr 2016 10:09
LONDON (Alliance News) - Wolf Minerals Ltd said it remains confident it is well positioned for a market recovery, as it expects the price of tungsten to continue to increase, as it continued to make good progress at its Drakelands Operations in Devon.
Wolf Minerals said that weather during the first quarter of 2016 at Drakelands was challenging, but it continued to make good progress in the mine and the mining waste facility.
Total cash expenditure for the quarter was AUD16.8 million, it said. A total of 529,001 bank cubic metres of material was moved in the quarter.
There was one lost time injury during the quarter, when an employee missed a shift following an electrical incident.
It plans to commence a small diamond drilling program in the open pit in the next quarter to gather additional data on the particle size and distribution of mineralisation in the ore body.
Following the end of the quarter Wolf Minerals arranged a GBP25 million standby subscription facility with its major shareholder Resource Capital Funds, which it will use to strengthen its balance sheet. As a result of this its landers agreed to provide a number of waivers and amendments to the senior loan conditions through to March next year, Wolf Minerals said.
"We are seeing the tungsten price increase and remain confident that this will continue and Wolf, with its large production capacity and location in a first world country, will be well positioned when the market recovers," said said Managing Director Russell Clark in a statement.
"The open pit is starting to take shape and blasting activities commenced during the quarter as we've mined into harder, deeper material," Clark added.
Shares in Wolf Minerals were down 2.0% at 8.21 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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